Fed Medicaid freeze brings accountability to California, Minnesota finally

The Trump administration’s halt on Medicaid payments to California and Minnesota brings welcome focus on mismanagement by Govs.Gavin Newsom and Tim Walz.After years of ballooning budgets, program expansions and suspiciously lax oversight, these blue-state leaders need to learn that the free ride is over. The governors can dismiss the feds’ decision as political theater.

In reality, it’s just accountabilty.Under Newsom, California’s spending has exploded from roughly $209 billion at the start of his tenure in 2019 to over $350 billion in the 2026-27 cycle.Much of that surge was funneled into Medi-Cal, the state’s Medicaid program, where total spending roughly doubled.In-home supportive services, a flagship component, ballooned dramatically, with growth rates that federal reviewers flagged.

California saw 24% spending growth in key periods versus a 12% national average.Outrageous.These jumps came amid claims of higher caseloads and wages, but they also came despite persistent red flags from the state’s own audits.California’s state auditor has kept the state Department of Health Care Services on its high-risk list for years.

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By clicking above you agree to the Terms of Use and Privacy Policy.Never miss a story Earlier reports estimated these mismatches contributed to at least $1.9 billion in questionable payments, with prior cycles pointing to figures nearing $4 billion over several years.

Yikes.Discrepancies allowed payments to flow for individuals whose eligibility was murky or outright invalid, including benefits that lingered long after records suggested they should have stopped. The auditor repeatedly highlighted questions about Medi-Cal eligibility and insufficient follow-up.This created massive financial exposure while raising the obvious question: Where exactly were all those...